Lobbyist Loophole Closure Act

Bill Number

H.R. 7231

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2026-01-22: Referred to the House Committee on the Judiciary.

Last Updated

2026-02-11T14:46:16Z

AI-Generated Summary

Purpose

The Lobbyist Loophole Closure Act (H.R. 7231) aims to increase transparency in lobbying by closing gaps in the Lobbying Disclosure Act of 1995. It expands the types of people and activities that must register and report lobbying efforts, making it harder for certain behind-the-scenes work to avoid disclosure requirements.

Key Provisions

• Broadened Definition of Lobbying Activities: Includes "counseling" services (advice on strategy, planning, or preparation) that support direct lobbying contacts with government officials. This treats such counseling as part of lobbying if it helps prepare for meetings or communications with lawmakers or executive branch officials.
• Accountability for Advisors: Individuals who provide counseling services and have authority to direct or influence a lobbying contact are considered to have made that contact themselves. They must disclose it if they know it occurred and receive payment for their services.
• Lowered Registration Threshold: Reduces the time spent on lobbying activities that exempts someone from registering as a lobbyist from 20% to 10% of their total work time. This means more people whose job involves even a small portion of lobbying must register.
• Effective Date: Changes apply to lobbying contacts made after the bill becomes law.

Significant Changes to Existing Law

• Expanded Scope of Activities: The original law limited lobbying to direct efforts like meetings or calls. This bill adds indirect support like strategic counseling, research, and planning as reportable activities.
• Inclusion of Influencers: Previously, only the person making the direct contact was accountable. Now, advisors or planners behind the scenes with influence or knowledge are also treated as lobbyists.
• Tighter Threshold for Registration: The drop from 20% to 10% time threshold captures more part-time or occasional lobbyists who previously fell below the exemption, requiring them to file disclosures.

Potential Impacts

• On Government Agencies and Officials: Covered legislative and executive branch officials (e.g., members of Congress, their staff, or senior agency leaders) may receive more detailed disclosures about who is influencing them, potentially aiding in conflict-of-interest monitoring.
• On Citizens: Increases public access to information about lobbying efforts, helping voters and watchdog groups track special interests' influence on policy without relying on incomplete reports.
• On Lobbying Industry: Could raise compliance costs for firms and individuals, as more staff must register and report, possibly reducing the use of informal or advisory roles to skirt rules.
• No Direct International Relations Impact: The bill focuses on domestic lobbying, with no provisions affecting foreign entities or global affairs.

Main Stakeholders Affected

• Lobbyists and Consulting Firms: Directly impacted, as more employees and activities require registration and disclosure, increasing administrative burdens.
• Lawmakers and Executive Officials: Benefit from clearer visibility into influences on their decisions but may face more scrutiny.
• Public Interest Groups and Media: Gain from enhanced transparency, enabling better oversight of government processes.
• Businesses and Advocacy Organizations: Those engaging in lobbying may need to adjust strategies to comply with broader rules.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement of disclosure laws without creating new penalties, but could lead to more litigation over what counts as "counseling" or "influence." It aligns with First Amendment protections for petitioning government (lobbying rights) by focusing on transparency rather than restricting speech.
• Constitutional: No apparent conflicts with free speech or due process, as it expands reporting on paid activities without banning them.
• Political: May reduce "loopholes" that allow hidden influence, promoting accountability in a polarized environment. However, it could spark debate from industries viewing it as overregulation, potentially affecting bipartisan support in Congress.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Ramirez, Delia C. [D-IL-3]

Cosponsors (5)

Rep. Williams, Nikema [D-GA-5], Rep. Mullin, Kevin [D-CA-15], Rep. Simon, Lateefah [D-CA-12], Rep. Tonko, Paul [D-NY-20], Rep. Hoyle, Val T. [D-OR-4]

Recent Actions

• 2026-01-22: Referred to the House Committee on the Judiciary.
• 2026-01-22: Introduced in House
• 2026-01-22: Introduced in House

Bill Versions

• Lobbyist Loophole Closure Act — issued 2026-01-22 — PDF (3 pages)